This module allows you to analyze existing cross correlation between HitBTC DigiByte USD and Bitfinex NEO USD. You can compare the effects of market volatilities on HitBTC DigiByte and Bitfinex NEO and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in HitBTC DigiByte with a short position of Bitfinex NEO. See also your portfolio center
. Please also check ongoing floating volatility patterns of HitBTC DigiByte
and Bitfinex NEO
HitBTC DigiByte USD vs Bitfinex NEO USD
Assuming 30 trading days horizon, HitBTC DigiByte USD is expected to under-perform the Bitfinex NEO. But the crypto apears to be less risky and, when comparing its historical volatility, HitBTC DigiByte USD is 1.13 times less risky than Bitfinex NEO. The crypto trades about -0.24 of its potential returns per unit of risk. The Bitfinex NEO USD is currently generating about -0.2 of returns per unit of risk over similar time horizon. If you would invest 12,482 in Bitfinex NEO USD on February 19, 2018 and sell it today you would lose (4,909) from holding Bitfinex NEO USD or give up 39.33% of portfolio value over 30 days.
|Time Period||1 Month [change]|
Almost no diversification
Overlapping area represents the amount of risk that can be diversified away by holding HitBTC DigiByte USD and Bitfinex NEO USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Bitfinex NEO USD and HitBTC DigiByte is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on HitBTC DigiByte USD are associated (or correlated) with Bitfinex NEO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitfinex NEO USD has no effect on the direction of HitBTC DigiByte i.e. HitBTC DigiByte and Bitfinex NEO go up and down completely randomly.
Over the last 30 days HitBTC DigiByte USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days Bitfinex NEO USD has generated negative risk-adjusted returns adding no value to investors with long positions.